Originally Posted by
BA or bust
I may be wrong, but I think that the issue is with a Travel Insurer’s ability to reimburse your Airmiles in the event of a cancellation. So that is what is not covered. But if you travel using Airmiles and have a medical problem for example that is covered.
As I said above… I may be wrong, but it would seem strange for an insurer to exclude any travel whatsoever using miles.
The Nationwide policy has, until now, included the cost of replacing Avios. So in some cases you could stand to "profit" (based on BA's ~1.68p per Avios buying rates).